Higher Open Called For Indonesia Stock Market

(RTTNews) - The Indonesia stock market on Wednesday ended the four-day losing streak in which it had slumped almost 80 points or 1.1 percent. The Jakarta Composite Index now sits just beneath the 7,330-point plateau and it's expected to open to the upside again on Thursday.

The global forecast for the Asian markets suggests mild upside on optimism over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to follow suit.

The JCI finished modestly higher on Wednesday following gains from the financial shares, weakness from the cement stocks and a mixed picture from the resource companies.

For the day, the index climbed 82.34 points or 1.14 percent to finish at 7,329.80 after trading between 7,248.53 and 7,331.08.

Among the actives, Bank CIMB Niaga collected 0.51 percent, while Bank Mandiri added 0.71 percent, Bank Danamon Indonesia skidded 1.04 percent, Bank Negara Indonesia advanced 0.85 percent, Bank Central Asia rallied 1.53 percent, Bank Rakyat Indonesia strengthened 1.22 percent, Indosat Ooredoo Hutchison shed 0.65 percent, Indocement slid 0.28 percent, Semen Indonesia lost 0.42 percent, United Tractors improved 0.83 percent, Astra International climbed 1.47 percent, Energi Mega Persada surged 4.04 percent, Astra Agro Lestari sank 0.75 percent, Aneka Tambang soared 4.45 percent, Vale Indonesia plunged 2.64 percent, Bumi Resources gained 1.12 percent and Indofood Sukses Makmur and Timah were unchanged.

The lead from Wall Street is positive as the major averages opened higher on Wednesday, faded midday but rallied late to finish modestly in the green.

The Dow added 75.86 points or 0.20 percent to finish at 38,661.05, while the NASDAQ advanced 91.96 points or 0.58 percent to close at 16,031.54 and the S&P 500 rose 26.11 points or 0.51 percent to end at 5,104.76.

The rebound on Wall Street reflected a positive reaction to congressional testimony by Federal Reserve Chair Jerome Powell.

Powell told the House Financial Services Committee it will likely be appropriate for the Fed to begin lowering interest rates at "some point this year," although he reiterated officials need "greater confidence" inflation is moving sustainably toward 2 percent.

In economic news, payroll processor ADP said private sector employment in the U.S. increased by slightly less than expected in February.

Crude oil futures settled higher on Wednesday after data showed large declines in gasoline and distillate stockpiles last week. West Texas Intermediate Crude oil futures for April ended higher by $0.98 or 1.25 percent at $79.13 a barrel.